Answer:
5 units
Explanation:
Breakeven point is the point or number of units sold that makes the cost equal with the revenue generated. In other words, it is the point in which the profit or loss made by an entity is 0.
Given;
Variable cost per unit = $20
Selling price per unit = $50
Fixed cost = cost of rent = $150
Let the number of units to be sold be c
Total revenue = 50c
total cost = 20c + 150
To break even, total revenue = total cost
20c + 150 = 50c
50c - 20c = 150
30c = 150
c = 5
Ray must sell 5 units to break even.
Answer:
Niche Marketing
Explanation:
According to my research on different marketing strategies, I can say that based on the information provided within the question Digital's strategy is known as Niche Marketing. Like mentioned in the question this strategy emphasized focusing on small audiences in a very specific category. Which is what Digital is doing by focusing on the smaller market segments that the bigger competition is completely ignoring.
I hope this answered your question. If you have any more questions feel free to ask away at Brainly.
Answer:
The corporation's tax liability is $ 228,820.
Explanation:
To calculate tax liability we first have to find net profit. Detail calculation is given below.
<u><em>Net profit Calculation</em></u>
Sales $ 3,130,000
cost of goods sold and the operating expenses ($ 2,080,000)
Interest expense ( $ 377,000)
Net profit $ 673,000
<u><em>Tax liability Calculation</em></u>
Income fall under Tax bracket of 34% ($75,001 to $10,000,0000 for corporate tax. No additional surtax will be charged as income do not fall under its net.
Tax liabilty = 673,000 * 34% = $ 228,820
Answer:
PED = -1.4 or |1.4| in absolute values, price elastic
Explanation:
the price elasticity of demand (PED) using the midpoint method:
PED = % change in quantity / % change in price
- % change in quantity = {(Q
2 − Q1
) / [(Q2 + Q1)/2]} x 100 = {(200 − 300
) / [(200 + 300)/2]} x 100 = -100 / 250 = -0.4
- % change in price = {(P2 − P1
) / [(P2 + P1)/2]} x 100 = {(1 − 0.75
) / [(1 + 0.75)/2]} x 100 = 0.286
PED = -0.4 / 0.286 = -1.4 or |1.4| in absolute values
